Argo Blockchain stock looking to build on strong start to 2021
The cryptocurrency mining services company has enjoyed solid share price growth on the back of surging retail interest.
London-based cryptocurrency company Argo Blockchain PLC (LON: ARB) has been one of the under-the-radar winners in the recent retail investing frenzy, and shares in the company are now trading at around 98p, a rise of more than 800% over the last two months.
Riding two waves
Argo has benefitted from the renewed surge of interest in both the stock market and cryptocurrencies, fuelled by the huge media attention given to the GameStop (GME) stock saga and Dogecoin’s recent rise. As a crypto-mining service provider, Argo’s success is closely tied to the performance of the crypto market and the price of bitcoin in particular, which has enjoyed spectacular growth over the winter.
As the only cryptocurrency mining company listed on the London Stock Exchange, Argo is well-positioned to benefit from any retail stock investors looking to dip their toes in the crypto markets. ARB shares even became one of the five most purchased stocks on Hargreaves Lansdown at the end of January.
What does Argo actually do?
Argo is a blockchain technology company that focuses on large-scale and institutional cryptocurrency “mining”, with multiple mining facilities throughout North America. Mining is the process by which cryptocurrency networks such as Bitcoin and Ethereum operate. Miners use computers to solve complex algorithms, which process and verify transactions on the blockchain and help keep the network secure. In return, they are rewarded with a certain amount of the cryptocurrency itself.
Argo also recently announced it had become the lead investor in Pluto Digital Assets PLC, a crypto-focused venture capital group, as well as the purchase of two additional data centres in Quebec, Canada.
Is 2021 the year of cryptocurrency?
Bitcoin and other cryptocurrencies enjoyed a huge revival in 2020, and the total crypto market cap grew over $1 trillion in early 2021. With celebrities such as Elon Musk and even Kiss’s Gene Simmons tweeting their support of Dogecoin recently, there’s speculation that the crypto market could see a surge similar to that of 2017, when the value of many cryptocurrencies skyrocketed.
While it hasn’t matched the growth of some of the most successful crypto projects, Argo has also enjoyed impressive gains over the last 12 months. After trading at less than 3p back in March 202, ARB shares recently surged to £1.25, and have now stabilised around the £1 mark.
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